The two hottest real estate markets in Australia seem to be letting out steam. Prices in Sydney dropped 0.3 percent in March bringing values down by 2.1 percent on the year. Melbourne prices dropped by 0.2 percent, recording a year to date fall of 0.5 percent. The annual growth in the capital city, however, remained positive at 5.3 percent.

What’s happening in the Australian real estate market

Overall, home prices for the combined capital cities slipped 0.2 percent in March as the annual growth in prices slowed down to 0.8 percent from 10.5 percent in mid-2017. Breaking down the data by individual capitals, prices fell by 0.4 percent in Sydney, 0.2 percent in Melbourne, and 0.1 percent in Adelaide. Perth and Brisbane saw a growth of 0.2 percent and 0.1 percent, respectively, during the period.

What’s happening in the Australian real estate market

House prices in Australia fell for the seventh time in March, propelled majorly by the slowdown in Sydney and Melbourne.

“A combination of tighter mortgage-lending standards, regulatory restrictions on investor loans and affordability constraints are weighing on the Sydney market. While the pace of decline has slowed, few predict a quick rebound,” reports an article on Bloomberg.

The article goes on to quote Tim Lawless, Corelogic’s head of research, who says, “…the prospect for a rebound in capital gains, as seen through late 2016 and early 2017, [is] far less likely.”

As a result, it is not very surprising that property buyers are now setting their sights upon regional cities in Australia, such as Hobart. According to experts, in addition to affordability, the changing nature of work has also enabled many persons to move to regional areas, as they can work remotely and only travel to office when needed. Consequently, regional areas with good connectivity to major cities are expected to show the strongest growth.

Hobart – Where Australian homebuyers are flocking

Hobart was the only capital city where dwelling values rose last month.
Crowned as Australia’s best-performing capital city, Hobart currently offers a median price of $416,840 to home buyers. A very comfortable entry point, indeed, compared to over $900,000 in Melbourne and $1,000,000 in Sydney.

And guess who’s flocking to Hobart – baby boomers preparing for retirement or those looking for a holiday home or a lifestyle property.

ABC News reports that “Regional property markets are now starting to consistently outperform the major capital cities, as retiring baby boomers look for a sea change and younger households look for more affordable locations… The latest data from CoreLogic show home prices were flat nationally last month, but it was a 0.4 percent gain in regional markets that offset a 0.2 percent fall for the capitals.”

Planning to buy your dream home?

Affordability and lifestyle are two main factors that determine the location of your future home. However, there is one more factor that will affect your choice of housing and lifestyle for years to come – your home loan!

Picking the right home loan can spell the difference between a well-performing property and a dud on your hands. As an owner occupier, a properly structured home loan is crucial for managing your repayments well, enabling you to enjoy your new home without the financial stress of lagging behind your mortgage.

If you plan to buy a property, start by calculating your borrowing capacity here. This will give you an idea of how much you can afford to spend – and you can narrow down your property search accordingly. Don’t worry if your borrowing capacity is low and you cannot afford a property in an area you desire – you could consider starting your journey through rentvesting – which means, you buy where you can and rent where you like (Read more).

Of course, it makes sense to contact a mortgage broker and understand how much you can really afford to borrow. It is possible that you don’t have a large deposit saved up but have adequate income to service a home loan. A mortgage broker will take into account your individual circumstances before advising you on your borrowing capacity and the type of loan suitable for you. Speak to an expert here.

HashChing is an online mortgage marketplace that enables Australian homebuyers to compare broker pre-negotiated home loan rates online. Besides, aspiring home borrowers can get in touch with our verified broker partners online to have their queries answered by experts in a transparent manner, free of cost. Click here to browse our broker database.


By Vidhu Bajaj,
HashChing Content Writer



HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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